Company registration number 11583929 (England and Wales)
ARCH FINANCE LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
ARCH FINANCE LTD
COMPANY INFORMATION
Directors
R M Freye
C Musgrove
P Hurden
Company number
11583929
Registered office
12-13 Starkie Street
Preston
Lancashire
PR1 3LU
Auditor
Pierce C A Limited
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
Business address
12-13 Starkie Street
Preston
Lancashire
PR1 3LU
ARCH FINANCE LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 20
ARCH FINANCE LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The directors present the strategic report for the year ended 31 March 2023.

 

Fair review of the business

 

The performance of Arch Finance (AF) during the financial year has been in line with expectations. We continue to develop a long-term sustainable business and the move to being Professional Passport accredited has been another positive and important strategic step.

 

Our strategic focus is set upon the strengths of our People, Service Provision and Governance. These have been identified by the Board as the core pillars of our strategy.

 

We remain proud of our growing reputation for providing a robust and reliable service. We are pleased with the feedback from customers and workers regarding the quality of service and security enhancements in place.

 

 

Risk

Principal risks identified, reviewed and rated are as follows:

 

Liquidity risk

We have almost no borrowing requirements and our asset base continues to be strong and increasing. Liquidity risk is very low.

 

Credit risk

Our debtor value is not considered material and so this risk is minimal.

 

Interest rate risk

There is a low risk to variations in UK interest rates. Changes in interest rates will not have a material effect on AF.

 

 

Performance monitoring

The Board conduct a quarterly review with performance updates from the Finance Manager. Both financial and non-financial KPI’s are reviewed against our forecast as an input to strategic decision making.

 

KPI’s reviewed continue to include gross profit, net profit, number of paid workers, staff headcount and customer satisfaction.

 

On behalf of the board

.............................................
C Musgrove
Director
Date: .............................................
ARCH FINANCE LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

The directors present their annual report and financial statements for the year ended 31 March 2023.

Principal activities

The principal activity of the company continued to be that of a UK contractor umbrella company.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

R M Freye
C Musgrove
P Hurden
Auditor

In accordance with the company's articles, a resolution proposing that Pierce C A Limited be reappointed as auditor of the company will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

ARCH FINANCE LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
On behalf of the board
C Musgrove
Director
20 March 2024
ARCH FINANCE LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ARCH FINANCE LTD
- 4 -
Opinion

We have audited the financial statements of Arch Finance Ltd (the 'company') for the year ended 31 March 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

ARCH FINANCE LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARCH FINANCE LTD
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

In identifying and assessing risks of material misstatement in respect of irregularities we considered the following:

We are also required to perform specific procedures to respond to the risk of management override.

As a result of our audit procedures we did not identify a material risk of fraud or other non-compliance with laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

 

 

 

 

 

 

 

 

ARCH FINANCE LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARCH FINANCE LTD
- 6 -

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

James King
Senior Statutory Auditor
For and on behalf of Pierce C A Limited
20 March 2024
Statutory Auditor
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
ARCH FINANCE LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
12,820,801
12,105,506
Cost of sales
(12,653,168)
(11,971,275)
Gross profit
167,633
134,231
Administrative expenses
(158,273)
(109,380)
Other operating income/(expenses)
4,000
(682)
Operating profit
4
13,360
24,169
Interest receivable and similar income
7
1,104
-
0
Interest payable and similar expenses
8
(53)
-
0
Profit before taxation
14,411
24,169
Tax on profit
9
(2,687)
(5,310)
Profit for the financial year
11,724
18,859

The profit and loss account has been prepared on the basis that all operations are continuing operations.

ARCH FINANCE LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
£
£
Profit for the year
11,724
18,859
Other comprehensive income
-
-
Total comprehensive income for the year
11,724
18,859
ARCH FINANCE LTD
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
9,676
11,671
Current assets
Debtors
12
256,339
73,098
Cash at bank and in hand
710,018
941,079
966,357
1,014,177
Creditors: amounts falling due within one year
13
(921,100)
(982,140)
Net current assets
45,257
32,037
Total assets less current liabilities
54,933
43,708
Provisions for liabilities
Deferred tax liability
14
2,419
2,918
(2,419)
(2,918)
Net assets
52,514
40,790
Capital and reserves
Called up share capital
16
100
100
Profit and loss reserves
52,414
40,690
Total equity
52,514
40,790

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

The financial statements were approved by the board of directors and authorised for issue on 20 March 2024 and are signed on its behalf by:
C Musgrove
Director
Company registration number 11583929 (England and Wales)
ARCH FINANCE LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2021
100
29,031
29,131
Year ended 31 March 2022:
Profit and total comprehensive income
-
18,859
18,859
Dividends
10
-
(7,200)
(7,200)
Balance at 31 March 2022
100
40,690
40,790
Year ended 31 March 2023:
Profit and total comprehensive income
-
11,724
11,724
Balance at 31 March 2023
100
52,414
52,514
ARCH FINANCE LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
19
(227,370)
(87,094)
Interest paid
(53)
-
0
Income taxes paid
(4,742)
(4,460)
Net cash outflow from operating activities
(232,165)
(91,554)
Investing activities
Purchase of tangible fixed assets
-
0
(1,300)
Interest received
1,104
-
0
Net cash generated from/(used in) investing activities
1,104
(1,300)
Financing activities
Dividends paid
-
0
(7,200)
Net cash used in financing activities
-
(7,200)
Net decrease in cash and cash equivalents
(231,061)
(100,054)
Cash and cash equivalents at beginning of year
941,079
1,041,133
Cash and cash equivalents at end of year
710,018
941,079
ARCH FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
1
Accounting policies
Company information

Arch Finance Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 12-13 Starkie Street, Preston, Lancashire, PR1 3LU.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

The directors are not aware of any material uncertainties affecting the company and consider that the company will have sufficient resources to continue trading for the foreseeable future. As a resulttrue, the directors have continued to adopt the going concern basis in preparing the financial statements.

1.3
Turnover

Turnover represents amounts receivable for services provided net of VAT.

 

Turnover comprises fees charged to clients based on employees placed up until the balance sheet date.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
10% & 33% Straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.6
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price including transaction costs.

ARCH FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 13 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors are initially recognised at transaction price.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

ARCH FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.7
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

1.8
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.9
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.10
Government grants

Grants are credited to deferred revenue. Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets. Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Payroll costs and fees
12,820,801
12,105,506
ARCH FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
3
Turnover and other revenue
(Continued)
- 15 -
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
12,820,801
12,105,506
2023
2022
£
£
Other revenue
Interest income
1,104
-
Grants received
-
(682)
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Government grants
-
682
Fees payable to the company's auditor for the audit of the company's financial statements
1,905
-
0
Depreciation of owned tangible fixed assets
1,995
1,995
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Administrative staff
5
5
Subcontractors
370
451
375
456

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
11,454,574
10,817,328
Social security costs
1,100,296
986,975
Pension costs
112,883
102,211
12,667,753
11,906,514
ARCH FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
3,000
3,000
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
1,104
-
0
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
1,104
-
0
8
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Other interest
53
-
0
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
3,186
4,742
Deferred tax
Origination and reversal of timing differences
(499)
568
Total tax charge
2,687
5,310
ARCH FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
9
Taxation
(Continued)
- 17 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
14,411
24,169
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
2,738
4,592
Tax effect of expenses that are not deductible in determining taxable profit
69
92
Effect of change in corporation tax rate
(120)
626
Taxation charge for the year
2,687
5,310
10
Dividends
2023
2022
£
£
Interim paid
-
0
7,200
11
Tangible fixed assets
Fixtures and fittings
£
Cost
At 1 April 2022 and 31 March 2023
16,920
Depreciation and impairment
At 1 April 2022
5,249
Depreciation charged in the year
1,995
At 31 March 2023
7,244
Carrying amount
At 31 March 2023
9,676
At 31 March 2022
11,671
ARCH FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,071
71,525
Other debtors
3,483
1,573
Prepayments and accrued income
251,785
-
0
256,339
73,098

Included in prepayments and accrued income are £241,316 (2022 - £nil) of un-invoiced contractor costs up to the year end date.

13
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
2,642
7,747
Corporation tax
3,186
4,742
Other taxation and social security
642,094
851,797
Accruals and deferred income
273,178
117,854
921,100
982,140

Included in accruals and deferred income are £241,246 (2022 - £nil) of contractor wages costs due up to the year end date.

14
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
2,419
2,918
2023
Movements in the year:
£
Liability at 1 April 2022
2,918
Credit to profit or loss
(499)
Liability at 31 March 2023
2,419
ARCH FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
112,883
102,211

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
75
75
75
75
Ordinary B shares of £1 each
25
25
25
25
100
100
100
100
17
Related party transactions

During the year, the company charged Service Care Solutions Limited £12,455,123 (2022 - £11,858,270) in respect of employees utilised. All charges were levied at commercial rates.

 

Service Care Solutions Limited is a company with common directors in place.

18
Ultimate controlling party

The company is under the control of the director, Mr R M Freye, by virtue of his majority shareholding in the company.

19
Cash absorbed by operations
2023
2022
£
£
Profit for the year after tax
11,724
18,859
Adjustments for:
Taxation charged
2,687
5,310
Finance costs
53
-
0
Investment income
(1,104)
-
0
Depreciation and impairment of tangible fixed assets
1,995
1,995
Movements in working capital:
(Increase)/decrease in debtors
(183,241)
60,741
Decrease in creditors
(59,484)
(173,999)
Cash absorbed by operations
(227,370)
(87,094)
ARCH FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
20
Analysis of changes in net funds
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
941,079
(231,061)
710,018
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